Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Chapter 6, Problem 12P
To determine
The impact of abolishing draft on male college enrollment.
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A poverty threshold represents the minimum annual household income for a family not to be considered poor. In 1995, the poverty threshold for a family of four with two children under the age of 18 years was $15,828.In 2005, the poverty threshold for a family of four with two children under the age of 18 years was $19,739. Assuming poverty thresholds increase in a straight-line fashion, use the midpoint formula to estimate the poverty threshold of a family of four with two children under the age of 18 in 2000.
The poverty threshold of a family of four with two children under the age of 18 in 2000 is $
Suppose you estimate the equation
colGPA = Bo + B1 faminc+ B2hsGPA+ B3SAT + u
where faminc is a student's family income that is reported on a survey when the student is in college.
Because the data are self reported, you believe that the family income data recorded in faminc is not
the exact income that a family has, but rather an approximation or best-guess. Which of the following
is likely to be true about the estimated relationship between family income and college GPA 31 and the
true relationship between family income and college GPA B1?
A. E(B1) = B1
В. Е(3) > В
C. E(B1) < B1
D. E(B)) =
QUESTION TWORecently, the government of the republic of Zambia conducted a 2022 Census of Population and Housing. From the summary results, Zamstats indicated that the 2022 Zambian population is 19,610,769. Assume that 35% of the population are not in the labour force. Suppose also that from those in the labour force, 40% are employed. Determine the total number of people who are;a) not in the labour force.b) in the labour force.c) employed.d) unemployed.
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- In 1997 the average American had an income of about $29,000. In the same year, the average Mexican earned $8,000, and the average Nigerian earned $900. Not surprisingly, this large variation in average income is reflected in various measures of the quality of life. Citizens of high-income countries have more TV sets, more cars, better nutrition, better health care, and longer life expectancy than citizens of low-income countries. In the United States, incomes have historically grown about 2 percent per year (after adjusting for changes in the cost of living). At this rate, average income doubles every 35 years. Over the past century, average income has risen about eight fold. In nations where workers can produce a large quantity of goods and services per unit of time, most people enjoy a high standard of living; in nations where workers are less productive, most people must endure a more meager existence. Similarly, the growth rate of a nation’s productivity determines the growth rate…arrow_forwardStates (and provinces) that have control over taxation sometimes reduce taxes in an attempt to spur economic growth. Suppose that you are hired by a state to estimate the effect of corporate tax rates on, say, the growth in per capita gross state product (GSP).(i) What kind of data would you need to collect to undertake a statistical analysis?(ii) Is it feasible to do a controlled experiment? What would be required?(iii) Is a correlation analysis between GSP growth and tax rates likely to be convincing? Explain.arrow_forwardIn a big city 325 men out of 600 men were found to be smokers. Does this information support the conclusion that the majority of men in this city are smokers?arrow_forward
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